In life, when spending a considerable amount of money on anything, you need to evaluate whether the purchase will be a good investment. Or, are you simply splurging the cash on impulse and ending up with an item or service that will not only lose money but not enrich your life in any way.
What is an investment?
Before looking into whether or not a caravan is a good investment, we first must truly understand what an investment is.
According to Investopedia, in an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth.
Away from business and economics, an investment can be viewed as a purchase or action that brings deferred gratification – benefits after the act.
So, is buying a caravan a good investment? Well, a lot of it depends on how you plan on using the caravan; and also, how regularly you plan on using it.
Here are a couple of common uses for a caravan
Common uses for a caravan
Holidaying – holidaying is probably the one thing that is most synonymous with caravans. A caravan offers flexibility and often a cheap(ish) option when it comes to going on holiday. They’re great for those who like a weekend break away at the seaside, or people wanting to take the children away for a short summer break.
Additional Space – many believe that caravans only come into use during the summer. However, a caravan can be used all year round. If you need additional living space at home, then a caravan in the garden or on the drive is a great way of achieving this. Plus, buying a caravan is much cheaper than paying out for an extension on your home.
How to make sure that buying a caravan is a good investment:
Opt for quality
When investing in a caravan, it’s important to look for quality. There are many options out there, but finding a trusted caravan manufacturer or seller who will provide you with a high-quality caravan that suits your wants and needs is a must.
For example, White Arches caravans are fantastic quality, meaning that not only will their value depreciate more slowly; but, you’ll really enjoy the time that you spend in your new portable surroundings.
Ensure the price is right
As with any investment, the initial buying price can make or break it. The amount that you should spend on a caravan is entirely dependent on your requirements and situation. There are two ways to approach purchasing your caravan.
Firstly, opt for new. This will ensure that you get the product that you want. Fresh, clean and never before used. However, bear in mind that a brand-new caravan is unlikely to increase in value – especially in the short term.
The second option is to buy a cheaper, second-hand caravan and renovate it. In terms of a money-making exercise, renovating an older caravan is the best way to save and make money; providing you have the skill set to renovate it yourself.
Evaluate the regularity that the caravan will be used
Another reason that a caravan could be a good investment is that, rather than necessarily making you money, it could save you money.
As opposed to spending hundreds or thousands of pounds going abroad each year, you’ll be able to scratch that holiday itch in a much cheaper way – hooking your caravan up to your car and heading off for a short break.